(IND) Reverse service tax
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
Use a batch process to reverse service tax credits for vendor transactions. You can reverse service tax credits only for open invoices.
When you reverse service tax by using a batch process, the service tax credit is reversed. The Point of taxation status field in the Vendor transactions and Open transactions forms is updated as follows:
If the invoice has not been settled within 90 days, the service tax is fully reversed, and the point of taxation status is Reversed.
If a partial payment is received within 90 days, the vendor invoice is only partially reversed, and the point of taxation status is Partially reversed.
You can also reverse service tax manually for one or more individual vendors. For more information, see (IND) Manually reverse or reclaim service tax.
Prerequisites for reversing service tax
Service taxes must be enabled. Click General ledger > Setup > General ledger parameters. In the Sales tax area, in the Apply India taxes field group, select the Service tax check box.
Only vendor transactions that have the Original point of taxation status are included in the batch process. In the Vendor transactions form, on the General tab, you can view the point of taxation status in the Point of taxation status field. The status is updated automatically by the batch process.
Tax reversals must not be blocked for the transactions for which you want to reverse service tax. In the Vendor transactions form, on the General tab, clear the Block tax reversal check box to remove any blocking of tax reversals.
View transactions where service tax is calculated
You can view transactions where service tax is calculated in the Point of taxation status field in the Vendor transactions and the Open transactions forms.
Click Accounts payable > Common > Vendors > All vendors. On the Action Pane, on the Vendor tab, in the Transactions group, click Transactions. On the General tab, view the point of taxation status in the Point of taxation status field.
Click Accounts payable > Common > Vendors > All vendors. On the Action Pane, on the Vendor tab, in the Transactions group, click Transactions, and then click Open. On the General tab, view the point of taxation status in the Point of taxation status field.
Reverse service tax by using a batch process
Click General ledger > Periodic > India > Batch reversal for service tax.
In the Unit field, select the unit of time for which to reverse the service tax. Then, in the Number of units field, select the number of units.
On the Batch tab, select the Batch processing check box.
Click Recurrence to define the recurrence of the batch process, and then click OK.
See also
(IND) Vendor transactions (modified form)